Hello All!

   ---------------------------------------------------------------------

   This article is from Smart Reseller (http://www.zdnet.com/sr/).
   Visit this page on the Web at:
   http://www.zdnet.com/sr/stories/news/0,4538,2326830,00.html

   ---------------------------------------------------------------------

[Ed. Some HTML trimmed]

   Shhh! IBM's Still Selling OS/2

   IBM is quietly exceeding its own OS/2 sales expectations.

   By Esther Schindler, Sm@rt Reseller

   While IBM always has maintained that it continues to actively support
   its OS/2 operating system, the general market perception is that the
   company is trying to scoop kitty litter over the product, and is
   minimizing OS/2 sales.

   However, Sm@rt Reseller has learned that IBM's doing much better than
   even it expected. It just hasn't bothered to tell anybody.

   According to IBM sources, the IBM OS/2 Warp client has sold at 134
   percent of plan for the last five quarters, accounting for more than
   $70 million in revenue, with the greatest increase occurring at the
   end of 1998.

   This growth is being credited to revenue from large enterprise license
   agreements, additional client upgrade protection plans, and--at least
   in IBM's eyes--positive customer calls on strong e-business
   directions.

   In addition, the server versions of OS/2, Warp Server and Warp Server
   for e-business, have generated more than $30 million in revenue over
   the last five quarters, with a large increase from 4Q98-1Q99 as well.
   Again, say sources, IBM has had significant sales increases from large
   customers. According to sources, the increase is due, in part, to
   interest in WorkSpace On-Demand.

   But those statistics don't necessarily give all OS/2 resellers or
   end-users reason to rejoice. IDC reports that OS/2 only held 0.5
   percent of the 89 million client operating environment market and 3.0%
   of the server operating environment market in 1998. The OS/2 shipments
   declined about 40% in both markets.

   Nonetheless, OS/2 can be a successful special purpose operating
   environment. According to IDC analyst Dan Kusnetzky, "As IBM presents
   host-managed, server-centric computing solutions, it points out that
   this approach will lower the costs of administration and support. They
   don't mention that OS/2 just might be running on the desktop or on the
   workgroup server. Customers who agree with IBM purchase the solution
   and seem happy. More and more of the time, IDC expects IBM to sell
   OS/2 as part of a complete solution with-out mentioning OS/2."

   Copyright (c) 1999 ZDNet. All rights reserved. Reproduction in whole
   or in part in any form or medium without express written permission of
   ZDNet is prohibited. ZDNet and the ZDNet logo are trademarks of
   Ziff-Davis Inc. if (isIE4PC) {document.write('');}

   ---------------------------------------------------------------------

   Copyright (c) 1998 ZDNet. All rights reserved. Reproduction in whole
   or in part in any form or medium without express written permission of
   ZDNet is prohibited. ZDNet and the ZDNet logo are trademarks of
   Ziff-Davis Inc.

Stewart Honsberger (AKA Blackdeath)
 blackdeath@softhome.net
  http://sprk.com/blackdeath

--- Msged/LNX TE 06 (pre)